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Report of Indian Institute of Public Administration ... - Ministry of Power

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State <strong>Report</strong>s (Vol.-III)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

the levels <strong>of</strong> customer service through power sector reform. The Government <strong>of</strong><br />

Karnataka accordingly announced its policy and approach to power sector reforms in<br />

January 1997. The reform process <strong>of</strong> the power sector would complete one decade by<br />

the end <strong>of</strong> the current year (2006). It would be appropriate at this stage to take stock <strong>of</strong><br />

the progress <strong>of</strong> the reforms carried out so far, analyse the gains and shortcomings, if<br />

any, and identify the way forward, to make the reform process more successful. This<br />

report is an attempt in that direction.<br />

BACKGROUND INFORMATION<br />

The total installed generating capacity in Karnataka including Central allocations and<br />

private power comes to 8,355 MW, <strong>of</strong> which 3,673.30 MW comes from hydro<br />

resources 2 . Some 1,470 MW comes from the only coal-based power station (with<br />

seven units) at Raichur (RPSS) <strong>of</strong> KPCL; the rest comes from Central allocation,<br />

private generation capacity, Vishweshwaraiah Vidyut Nigam Limited (VVNL), and<br />

renewable sources (wind power). As mentioned earlier, KPCL accounts for about 56<br />

per cent <strong>of</strong> the total generation. The State receives 1,618.69 MW <strong>of</strong> power as its share<br />

from the Central <strong>Power</strong> Companies. The VVNL 3 has an installed capacity <strong>of</strong> 354.32<br />

MW, including from its diesel generators (127.92 MW) as well as from hydropower<br />

sources (226.40 MW). The private sector generation comes to about 280.95 MW<br />

(hydel) and 588 MW (thermal). There are also several wind energy firms <strong>of</strong> small<br />

capacities, which supply power to the State Grid. It is pertinent that the total private<br />

power supply amounts to 1,741.61 MW, which works out to about 21 per cent <strong>of</strong> the<br />

installed capacity.<br />

The break up <strong>of</strong> the generating capacity in the State is as given in the following table:<br />

Table: Details <strong>of</strong> Generating Capacity (MW)<br />

KPCL VVNL Central Private Total<br />

Thermal 1,470.00 127.92 1,618.69 588.00 3,804.61<br />

Hydel 3,165.95 226.40 - 280.95 3,673.30<br />

RES 4.55 (Wind) - - 872.66 877.21<br />

Total 4640.50 354.32 1,618.69 1,741.61 8,355.12<br />

{KPCL and VVNL put together accounts for about 60 per cent <strong>of</strong> the installed capacity.}<br />

Energy available for transmission during the last three years, as per the information<br />

provided by KPTCL is as follows:<br />

2<br />

The <strong>Power</strong>line <strong>of</strong> Karnataka; KPCL <strong>Public</strong>ation.<br />

3<br />

VVNL was formed in 1999, at the time <strong>of</strong> winding up <strong>of</strong> the KEB, to transfer the diesel generating stations<br />

under its control to the new utility.<br />

3.6

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